DOCSLIB.ORG

Syllabus Course Description – in This Course We Will Investigate Why Nations Trade, What They Trade, and Who Gains from Trade

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Syllabus Course Description – in This Course We Will Investigate Why Nations Trade, What They Trade, and Who Gains from Trade International Economics PROFESSOR Koopman Robert Academic year 2018-2019 [email protected] The Economics of International Trade Office hours EI057 - Autumn - 6 ECTS Course Description This course surveys the economics of international trade (both theory and empirics) for students who have a solid background in economics but do not specialize in international trade. The course is compulsory for students who do not follow the trade track and cannot be taken by students who also take Trade A and Trade B. Syllabus Course Description – In this course we will investigate why nations trade, what they trade, and who gains from trade. We will review the history of international exchange and study its effects on economic growth and development. We will cover a number of timely and topical subjects, and after reviewing the historical evolution of trade theories, use these frameworks to try and organize our thinking about such topics as trade and inequality, trade and employment, how large firms affect trading patterns, and how trade has contributed to globalization. At the end of the course you will have a full understanding of how to think about many of the forces affecting modern economies and economic growth. Main Textbook - International Economics: Theory and Policy (10th Edition) (Pearson Series in Economics) 10th Edition by Paul R. Krugman(Author), Maurice Obstfeld(Author), Marc Melitz(Author), referred to hereafter as KOM. This book can be found here http://www.amazon.co.uk/International- Economics-Paul-Krugman/dp/0273754092. You may also find earlier versions cheaper that will cover largely the same content, but some important elements might be missing. While I will adhere to the text for most of the conceptual material I will usually supplement the lectures with other material from the real world and build on in class discussions. Class attendance is highly recommended. Podcasts – I highly recommend Trade Talks https://piie.com/trade-talks, a free and advertisement- free weekly podcast from Soumaya Keynes (The Economist) and Chad P. Bown (PIIE) on trade and trade policy. Episodes are typically 20-30 minutes and a mix of economic analysis of trade events as well as conversations with political-economic experts and legal scholars about trade issues, including and especially insights from research. Examples include Douglas Irwin, Jennifer Hillman, Nuno Limão, Nina Pavcnik, Wolfgang Keller, Swati Dhingra, Dave Donaldson, Claudia Steinwender, Dani Rodrik, Chemin Eugène-Rigot 2 | CP 1672 - CH-1211 Genève 1 | +41 22 908 57 00 | graduateinstitute.ch MAISON DE LA PAIX Meredith Crowley, Tom Prusa, Caroline Freund, Petros Mavroidis, Mary Lovely, Joe Glauber, Emily Blanchard, and Jason Furman. And Chad Bown has developed a landing page with the timeline of events and data available on all of the products being hit with new tariffs, etc https://piie.com/blogs/trade-investment-policy-watch/trump-trade-war-china-date-guide Blogs/Tweeters – Some possible feeds to follow…Trade Talks @Trade__Talks, Doug Irwin @D_A_Irwin, Jennifer Hillman @JAHillmanGULaw, VoxEU @voxeu, Dani Rodrik @rodrikdani, Caroline Freund @CarolineFreund, Richard Baldwin @BaldwinRE, Paul Krugman @paulkrugman, and Christine Lagarde @Lagarde. Additional Readings – Numerous shorter readings are assigned in the relevant sections below that aim to reinforce the main text material. Most are straightforward and easy reads. Some useful, though completely discretionary readings, include – The Undercover Economist – by Tim Harford Free Trade Under Fire – by Doug Irwin The Mystery of Economic Growth – by Elhanan Helpman Rising Tide, Is Growth in Emerging Economies Good for the United States – Lawrence Edwards and Edward Z. Lawrence Useful Trade Related Websites – not all inclusive! The WTO Website – www.wto.org, including data at https://www.wto.org/english/res_e/statis_e/statis_e.htm and research at https://www.wto.org/english/res_e/reser_e/reser_e.htm The OECD Website – www.oecd.org/trade The World Bank Website – www.worldbank.org – search on trade DG Trade – European Commission – http://ec.europa.eu/trade/ USTR – www.ustr.gov The International Trade Center - http://www.intracen.org/ The US International Trade Commission – www.usitc.gov Pre-requisites for the Course and Grading – Students are expected to have a solid understanding of micro principals, particularly producer and consumer theory, including production possibility frontiers, production functions, first order conditions for profit maximization and cost minimization, supply curves, as well as utility functions, first order conditions for utility maximization and demand curves. While we review these basic concepts having a recent course will allow us to focus on the trade aspects. Also developing a good understanding of the notion of a "counterfactual" see these links http://theincidentaleconomist.com/wordpress/counterfactuals/; http://www.deirdremccloskey.com/docs/pdf/Article_97.pdf. Grading will be based on a mid-term (30%), final (40%), and a small group projects (30%) involving a short paper and presentations to the class. Discretionary problem sets and (eventually) answer sheets will be provided, but not graded. These will be reviewed if the course has a TA assigned. If no TA the problem sets may not be reviewed in depth, but I will try to answer your questions during office hours (do not wait until just before an exam!) Completing the problem sets is highly recommended as problems on the mid term and final will cover very similar material. In my experience students not successfully completing and understanding the problem sets generally struggle on important parts of the exams. Questions on the exams are largely drawn from the required text, require a general understanding of the assigned additional readings, and class discussions. - Page 2 - Small group projects (2-3 people) – in the group projects you are expected to write a short paper based on one or more of the non-textbook readings assigned (or other approved readings.) These papers will be between 5-7 pages, and you are expected to draw upon the theory and concepts discussed in class and in the textbook and apply them to the readings and illustrate how they support or fail to support the thesis in the article(s), how you might improve the article(s), or present an alternative thesis as explanation (again, drawing on the material from the course.) You are expected to provide an effective 15 minute presentation in class followed by another 10 minutes of discussion on your work with your classmates. All members of the group will be assigned the same grade. Depending on the number of students in the class you can expect to do at least 2 of these assignments during the semester. Course Outline (subject to change) This semester I am starting the course with applied policy assessments rather than the traditional introduction to theory given the current trade debate that is focused on applying tariffs and other policy instruments. Lectures – Starting in week 2 group presentations will take the last 25 minutes of class. Week 1 – Introduction and World Trade: An Overview KOM, Chapters 1 and 2 Paul Krugman, "What do Undergraduates Need to Know About Trade?" Link - http://www.jstor.org/stable/pdf/2117633.pdf?acceptTC=true Frederic Bastiat – "Petition of the Candle Makers." Link - http://bastiat.org/en/petition.html Weeks 2 and 3 – The Instruments of Trade Policy KOM Chapter 9 Feenstra, “How Costly is Protectionism?” Link - http://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.6.3.159 Messerlin, “The Costs of Protection in the European Community.“ Chapter 3 only. Link - http://www.piie.com/publications/chapters_preview/102/3iie2733.pdf USITC, “Economic Effects of Significant Import Restraints – 6th Update” Executive Summary only. Link - http://www.usitc.gov/publications/332/pub4094.pdf Huffbauer and Lowry, “U.S. Tire Tariffs: Saving Few Jobs at High Cost.” Link - http://www.iie.com/publications/pb/pb12-9.pdf Economist, "The Problematic Proposal" - http://www.economist.com/news/finance-and- economics/21704789-shifts-global-trade-patterns-are-fuelling-new-anti-trade-fervour Week 4 – Political Economy of Trade Policy and Trade Wars KOM Chapters 10 Trade “War” (?) assessments: Peterson Institute - US-China Economic Relations: From Conflict to Solutions—Part I https://piie.com/publications/piie-briefings/us-china-economic-relations-conflict-solutions-part-i - Page 3 - Center for China and Globalization - CCG Report | Understanding the US-China Trade War: Analyses and CCG Recommendations http://en.ccg.org.cn/ccg-report-understanding-the-us-china-trade-war- analyses-and-ccg-recommendations/ Crowly, “An Introduction to the WTO and GATT.” Link - https://www.chicagofed.org/publications/economic-perspectives/2003/4qeppart4 Irwin, “Avoiding 1930’s-Style Protectionism, Lessons for Today.” Link - http://siteresources.worldbank.org/INTRANETTRADE/Resources/239054-1239120299171/5998577- 1244842549684/6205205-1247069686974/Irwin.pdf Messerlin, “Political Stresses, Legal Constraints, and Old-Fashioned Economic Views.”Chapter 1 only. Link - http://www.piie.com/publications/chapters_preview/102/1iie2733.pdf Week 5 – Labour Productivity and Comparative Advantage: The Ricardian Model KOM Chapter 3 Paul Krugman, "Ricardo's Difficult Idea." Link - http://web.mit.edu/krugman/www/ricardo.htm Paul Samuelson, "Where Ricardo and Mill Rebut and Confirm Arguments of Mainstream Economists Supporting Globalization" - https://www.aeaweb.org/articles?id=10.1257/0895330042162403 Michael Spence,
Load more

Recommended publications
  • Nobel Laureates Joseph Stiglitz, Michael Spence to Co-Chair Independent Commission on Global Economic Transformation
    Institute for New Economic Thinking CONTACT: Moira Herbst - SVP of Communications + Editorial Director, Institute for New Economic Thinking (INET). Tel: +1-917-743-6350, Email: [email protected] Sharon Segel, APCO Worldwide Tel: +44 (0)7930 384 363, Email: [email protected] Sunday October 22, 2017 Institute for New Economic Thinking (INET) Announces: Nobel Laureates Joseph Stiglitz, Michael Spence to Co-Chair Independent Commission on Global Economic Transformation Call for New Thinking & New Rules for the New World Economy; Final Report Will Outline Solutions for Emerging and Developed Countries EDINBURGH, U.K.—Following the dramatic political shocks to the industrialized world in 2016, worsening global poverty and inequality, and inadequate public and private sector responses to the challenges that continue to plague the world’s economy 10 years after the financial crisis, the Institute for New Economic Thinking (INET) has initiated a Commission on Global Economic Transformation (CGET), with support from the Center for International Governance Innovation (CIGI). The effort will be led by Nobel Prize-winning economists Joseph Stiglitz and Michael Spence. As an independent entity, the Commission on Global Economic Transformation (CGET) is the first commission of its kind, initiated at a critical moment for the global economy. As political and economic populism sweep across the developed world, developing countries are searching for paths to prosperity, and people around the world are struggling with the challenges posed by widening inequality, technological disruption, and climate change. These problems are compounded by the ineffectiveness of current policy tools in many contexts, raising questions about the role of the state, of civil society, and of individuals along with national and international governance frameworks.
    [Show full text]
  • List of Contributors and Indexes
    This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: Corporate Capital Structures in the United States Volume Author/Editor: Benjamin M. Friedman, ed. Volume Publisher: University of Chicago Press Volume ISBN: 0-226-26411-4 Volume URL: http://www.nber.org/books/frie85-1 Publication Date: 1985 Chapter Title: List of Contributors and Indexes Chapter Author: Benjamin M. Friedman Chapter URL: http://www.nber.org/chapters/c11427 Chapter pages in book: (p. 383 - 392) List of Contributors Alan J. Auerbach Roger H. Gordon Department of Economics Department of Economics University of Pennsylvania University of Michigan 160 McNeil Building/CR Ann Arbor, MI 48109 Philadelphia, PA 19104 Martin J. Gruber Christopher F. Baum Graduate School of Business Department of Economics New York University Boston College New York, NY 10003 Chestnut Hill, MA 02167 Patric H. Hendershott Fischer Black Hagerty Hall Goldman, Sachs and Co. 1775 College Road 85 Broad Street Ohio State University New York, NY 10004 Columbus, OH 43210 Roger D. Huang Zvi Bodie Faculty of Finance School of Management University of Florida Boston University Gainesville, FL 32611 Boston, MA 02215 Michael C. Jensen John H. Ciccolo, Jr. Graduate School Citibank, NA of Management 55 Water Street University of Rochester New York, NY 10041 Rochester, NY 14627 Benjamin M. Friedman E. Philip Jones Harvard University Graduate School of Business Department of Economics Harvard University Littauer Center 127 Soldiers Field Road Cambridge, MA 02138 Boston, MA 02163 383 384 List of Contributors Alex Kane Stewart C. Myers School of Management Sloan School of Management Boston University Massachusetts Institute 704 Commonwealth Avenue of Technology Boston, MA 02215 Cambridge, MA 02139 Michael S.
    [Show full text]
  • Panmure House Advisory Board
    Panmure House Advisory Board Chairman Members Professor Orley Ashenfelter Professor Kenneth J Arrow Professor Edmund S Phelps Joseph Douglas Green Stanford University, Stanford, California Columbia University, New York 1895 Professor of Economics, 1972 Nobel Laureate in Economic Science 2006 Nobel Laureate in Economic Science Princeton University Former President, Professor Gary Becker Professor Christopher A Pissarides University of Chicago, Chicago, Illinois London School of Economics, London American Economic Association 1992 Nobel Laureate in Economic Science 2010 Nobel Laureate in Economic Science Professor James J Heckman Professor Edward C Prescott University of Chicago, Chicago, Illinois Arizona State University, Tempe, Arizona 2000 Nobel Laureate in Economic Science 2004 Nobel Laureate in Economic Science Professor Finn E Kydland Professor Myron S Scholes University of California, Santa Barbara, California Stanford Graduate School of Business, 2004 Nobel Laureate in Economic Science Stanford, California 1997 Nobel Laureate in Economic Science Professor Robert E Lucas Jr University of Chicago, Chicago, Illinois Professor Amartya Sen 1995 Nobel Laureate in Economic Science Harvard University, Cambridge, Massachusetts 1998 Nobel Laureate in Economic Science Professor Eric S Maskin Harvard University, Cambridge, Massachusetts Professor Vernon L Smith 2007 Nobel Laureate in Economic Science Chapman University, Orange, California 2002 Nobel Laureate in Economic Science Professor Robert C Merton Massachusetts Institute of Technology,
    [Show full text]
  • Economic Growth and Investment
    Economic Growth and Investment Through the challenges of the pandemic to individuals, communities and businesses around the world, we have found reason to be encouraged and optimistic about the future. The current and next generation of entrepreneurs around the globe are building networks of transformative organizations, changing perceptions of innovation, societal progress and fundamentally, the growth of intrinsic value. As pioneers of growth equity, General Atlantic has a long history – spanning more than 40 years – of empowering companies to reach new levels of growth and scale to tackle global challenges. The new generations of entrepreneurs each bring a dynamic growth mindset and innovative opportunities to their communities, which spur economic and societal growth. We are proud to partner with them. Our latest paper from Nobel Laureate and General Atlantic Senior Advisor Dr. Michael Spence explores the drivers behind the shift to inclusive global growth. Dr. Spence addresses the macroeconomic impact of the pandemic, the sectors likely to experience significant growth in the coming decade as a result, and the impact on global entrepreneurship. With the release of this piece, we are proud to be formally launching the General Atlantic Global Growth Institute. Through this platform, we will seek to advance conversations around what we believe to be the critical drivers of global growth today: innovation, entrepreneurial dynamism and societal contribution to both local and global communities. Led by Dr. Spence and with forthcoming contributions from thought leaders across our firm’s network, the GA Global Growth Institute will also examine the dynamic between our own work in supporting entrepreneurs in scaling businesses, and broader societal impacts, including digital enablement, financial inclusion, access to healthcare and education, and sustainability.
    [Show full text]
  • Competition Description
    The Policy Corner is delighted to invite all students and early career professionals of ages 30 years and under to take part in our 2017 essay competition Rethinking Economic Policy. With the generous support of the Young Scholars Initiative at the Institute for New Economic Thinking, we are offering cash prizes for the three best articles (€400, €200, and €100) and will invite the winners to Berlin for a discussion event with invited experts. Submissions close on October 31, 2017. Essay Topic Identify an issue that calls for a new perspective in economic policy and outline an innovative solution. Prizes The monetary prizes will be as follows: First place: €400 Second place: €200 Third place: €100 All three winners will be invited to Berlin to present their ideas at a discussion event with expert speakers in January 2018. Travel costs will be reimbursed up to €700 for the first place winner, and remaining funds will be offered to the second, and potentially third, place winners to reimburse their travel costs too. Submission Submissions should be sent via email to [email protected] as either .pdf or .docx by October 31, 2017, at 23:59 (Central European Time Zone). Please include with your submission: " Your name " Title and word count of your document " Your age " Your current location Information on your age, name and location will neither be shared with the review team nor with the jury. Eligibility Open to all students and young professionals of 30 years of age or younger. Writing Guidelines Submissions must be between 800 and 1000 words (excluding references), be written in English (US American), and supported with at least five references to credible sources (Chicago Style endnotes).
    [Show full text]
  • ΒΙΒΛΙΟΓ ΡΑΦΙΑ Bibliography
    Τεύχος 53, Οκτώβριος-Δεκέμβριος 2019 | Issue 53, October-December 2019 ΒΙΒΛΙΟΓ ΡΑΦΙΑ Bibliography Βραβείο Νόμπελ στην Οικονομική Επιστήμη Nobel Prize in Economics Τα τεύχη δημοσιεύονται στον ιστοχώρο της All issues are published online at the Bank’s website Τράπεζας: address: https://www.bankofgreece.gr/trapeza/kepoe https://www.bankofgreece.gr/en/the- t/h-vivliothhkh-ths-tte/e-ekdoseis-kai- bank/culture/library/e-publications-and- anakoinwseis announcements Τράπεζα της Ελλάδος. Κέντρο Πολιτισμού, Bank of Greece. Centre for Culture, Research and Έρευνας και Τεκμηρίωσης, Τμήμα Documentation, Library Section Βιβλιοθήκης Ελ. Βενιζέλου 21, 102 50 Αθήνα, 21 El. Venizelos Ave., 102 50 Athens, [email protected] Τηλ. 210-3202446, [email protected], Tel. +30-210-3202446, 3202396, 3203129 3202396, 3203129 Βιβλιογραφία, τεύχος 53, Οκτ.-Δεκ. 2019, Bibliography, issue 53, Oct.-Dec. 2019, Nobel Prize Βραβείο Νόμπελ στην Οικονομική Επιστήμη in Economics Συντελεστές: Α. Ναδάλη, Ε. Σεμερτζάκη, Γ. Contributors: A. Nadali, E. Semertzaki, G. Tsouri Τσούρη Βιβλιογραφία, αρ.53 (Οκτ.-Δεκ. 2019), Βραβείο Nobel στην Οικονομική Επιστήμη 1 Bibliography, no. 53, (Oct.-Dec. 2019), Nobel Prize in Economics Πίνακας περιεχομένων Εισαγωγή / Introduction 6 2019: Abhijit Banerjee, Esther Duflo and Michael Kremer 7 Μονογραφίες / Monographs ................................................................................................... 7 Δοκίμια Εργασίας / Working papers ......................................................................................
    [Show full text]
  • A Discussion with Nobel Laureate Michael Spence
    No. 11 IMD Faculty Jean-Pierre Lehmann A Discussion with Professor of International Political Nobel Laureate Michael Spence Economy, Founder of the Evian Group & Senior Fellow at the Fung Global Institute of modern information economics. He identified an important form of adjustment by Guest Contributor Michael Spence individual market participants, where the Professor of Economics at the better informed take costly actions in an Stern School of Business at New attempt to improve their market outcomes by York University, Professor credibly transmitting information to the poorly Emeritus of Management in the informed. Spence demonstrated when such Graduate School of Business at 1 Stanford University, a Senior signaling will actually work.” Fellow of the Hoover Institution at Stanford and a Distinguished In his opening remarks, IMD Professor Jean- Chair of The Commission on Growth Visiting Fellow of the Council on Pierre Lehmann described Spence as a rare Foreign Relations and Chair of and Development, 2006–2010 breed – a “modest economist” who has the Academic Board of the Fung In 2006 the Commission on Growth and Global Institute. demonstrated that economics originated in Development was formed to bring together moral philosophy, prior to its shift into a more Research & leading practitioners across sectors – from mathematics-focused discipline. Among Development government, business and policymaking – Michelle Noguchi Spence’s many career accomplishments, mostly from the developing world. The Professor Lehmann detailed two that have Commission’s goal was to understand the distinguished him and provide a backdrop to policies and strategies that enable rapid his approach to world economics order in The On 30 January 2012 The and sustained economic growth and Next Convergence.
    [Show full text]
  • The Capacity Expansion Process in a Growing Oligopoly: the Case of Corn Wet Milling
    This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: The Economics of Information and Uncertainty Volume Author/Editor: John J. McCall, ed. Volume Publisher: University of Chicago Press Volume ISBN: 0-226-55559-3 Volume URL: http://www.nber.org/books/mcca82-1 Publication Date: 1982 Chapter Title: The Capacity Expansion Process in a Growing Oligopoly: The Case of Corn Wet Milling Chapter Author: Michael E. Porter, A. Michael Spence Chapter URL: http://www.nber.org/chapters/c4438 Chapter pages in book: (p. 259 - 316) 8 The Capacity Expansion Process in a Growing Oligopoly: The Case of Corn Wet Milling m) MichaelE. Porter and A. Michael Spence is an :ies of would A central aspect of the dynamic problem facing the firm in an evolving industry is the decision about additions to productive capacity. Particu- larly in capital intensive industries, capacity decisions have long lead times and involve commitments of resources may be large in relation to firms' total capitalization. If the firm fails to add capacity at the ..S10. appropriate time, it not only loses immediate sales and market shares but also may diminish its long-run competitive position—if the firm adds too muchcapacity, it can be burdened with unmet fixed charges for long periods of time. From a competitive standpoint, additions to capacity can ia of posemajor problems since the matching of capacity to demand is often a major determinant of industry rivalry and profits. The problem is most acute in industries producing standardized products, where product dif- ferentiation does not protect firms against mistaken capacity decisions of others.
    [Show full text]
  • Iseo Summerschool 2013-Leaflet
    I.S.E.O SUMMER SCHOOL IN ECONOMICSECONOMICS–––– 11th editionedition---- with 3 Nobel Laureates in Economics : Robert Engle, James Mirrlees, Mike Spence 14/21 June 2014 Iseo, Italy “Shaping the Future: Towards a Sustainable Global Eonomy” LEARN ECONOMICS FROM NOBEL LAUREATES The I.S.E.O international Summer School aims at bringing to- gether a large number of graduate students coming from the most important international universities to improve their knowledge in economics. Classes will be held by 3 Nobel Laureates for Economic Sci- ences ( Robert Engle, James Mirrlees and Michael Spence) and well-known economists. R.SOLOW AT ISEO SUMMERSCHOOL2008 The I.S.E.O. Summer School deepens several aspects of global economy , investigating the role of different Countries in the M.SPENCE AT ISEO SUMMERSCHOOL 2009 international economic scenario. Every year it focuses on topi- cal themes, such as the changing structure of global economy, advanced and emerging markets, the strategies and instru- ments of monetary policy, the structure and mechanisms of the financial sector, with a particular focus on growth, the wel- fare state and unemployment. Every lesson includes a theoretical lecture and an open debate between the participants and the speakers on the discussed topics. Classes take place in a hotel conference center in Iseo , Brescia G.AKERLOF AT ISEO SUMMERSCHOOL 2010 (Northern Italy ). The official language of the course is English . The Institute will organize some trips to some of the most beautiful corners of Northern Italy, such as Venice. At the end of the course students will also receive an attendance certifi- cate. The atmosphere of the Summer School is really stimulating : participants have the chance to meet and discuss with col- leagues coming from all over the world and, in addition, they can share free time with the speakers and the Nobels.
    [Show full text]
  • Alibaba Initiates the Open Research Platform “Luohan Academy”
    Alibaba Initiates the Open Research Platform “Luohan Academy” Six Nobel Laureates, other top international minds to address societal changes arising from digital technologies Hangzhou, China, June 27, 2018 – Alibaba Group Holding Limited (“Alibaba Group”) (NYSE: BABA) has advocated the establishment of the “Luohan Academy” (“Academy”), an open research platform with Nobel Laureates and leading international social scientists to address universal challenges faced by societies arising from the rapid development of digital technologies. The Luohan Academy complements Alibaba’s DAMO Academy, a global research program established last October with a focus on developing cutting-edge technologies. Digital technologies are fundamentally changing markets and economies with the potential to improve mankind's prospects in many ways. The Luohan Academy will focus on examining the implications that technologies will bring to the societies in the future. “The advancement of technology is coming at us at dazzling speed and it has changed almost every aspect of human society. So when we look at the benefits from technology, it is equally important to understand the challenges we faced and how we can work together to address them,” said Jack Ma, Executive Chairman of Alibaba Group. “We feel the obligation to use our technology, our resources, our people and everything we have to help societies embrace the technological transformation and its implications. This is why we initiated an open and collaborative research platform, the Luohan Academy, and invite top international thinkers to join this collaboration,” added Ma. During the first conference held in Hangzhou this week, the committee of the Luohan Academy convened and signed the mission statement.
    [Show full text]
  • Book Reviews on Global Economy and Geopolitical Readings Esadegeo, Under the Supervision of Professor Javier Solana 4 and Professor Javier Santiso
    Book Reviews on global economy and geopolitical readings ESADEgeo, under the supervision of Professor Javier Solana 4 and Professor Javier Santiso 1 Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism George A. Akerlof and Robert J. Shiller (2009), Princeton University Press. In a great many We will only come to have real insight into major economic events if we face the fact that their causes are mainly of a psychological nature. For government, acknowledging the importance of animal spirits represents the opportunity to reformulate its participation in the economy. Without government intervention, the economy will undergo massive fluctuations. The time has come to take into account that what enables capitalism to work are the regulations that ensure that when citizens invest their money in the market, take out a mortgage or buy a car, they receive a product with certain guarantees. Basic idea and opinion Animal Spirits explains how the central premise of orthodox economic theory today – that all the individuals who participate in the economy are always driven by economic motives and that their behaviour is always rational – is radically mistaken. The authors show, rigorously and systematically, that many economic activities are governed by what Keynes called “animal spirits”: stimuli that are not economic as such, and decisions that are not purely rational. Only if we bear in mind these five “animal spirits” can we give the right answers to fundamental questions posed by economic theory. 2 The authors George A. Akerlof (1940) is a US economist and professor at UC Berkeley.
    [Show full text]
  • Course Information
    ECON 452: Senior Seminar Sweet Briar College, Fall 2012 Sherry Forbes Gray 317 T/R 1030-1200 434.381.6177 [email protected] j j j Course Information Description The original will of Alfred Nobel (1895) established Nobel Prizes in only five fields - physics, chemistry, medicine or physiology, literature, and peace - and the Prize continues to be considered one of the most prestigious awards for advances in those fields today. But in 1968, the Sveriges Riksbank established a Nobel Prize in the field of Economic Sciences, establishing an award for economists who "have during the previous year rendered the greatest service to mankind." But why economics? Nobel Prizes were not originally established for any field in the social sciences, so why was economics the only one to get a Nobel Prize? What is this "service" that economists provide, and what is the relevance of this "science of economics" for today’s problems? These are the questions we are going to address in this seminar as we study the contributions of the Nobel laureates. Specifically, we are going to examine 1.) the development of modern economics through the contributions of the Nobel Prize winners in economics, and 2.) how those ideas influenced (and continue to influence) every day life and how we think about the "big ideas" of today. Economics is not a "settled" discipline - the development of economic ideas and of economics as a science has not been neat, organized, or even at times very coherent. Why is there so much controversy? Much of the debate, of course, revolves around the appropriate role for government and how much we should rely on free markets or government intervention to solve society’sproblems.
    [Show full text]